View on SEBI’s consultation paper on Algorithmic Trading by Retail Investors

Hi PravinJ,
Thanks for sharing your thoughts and explaining SEBI’s POV. However, here are some key concerns:

  1. Loss of IP - rather lack of IP protection as algos need to be shared with broker and auditors. I am not saying there will be any systematic malpractice by any broker but individuals may violate IP rights.
  2. Additional cost and overhead- Cost and time taken for auditing might make some strategies useless
  3. Impractical - parametric changes or minor code changes will require recertification which will really make this impractical
  4. Simple execution using APIs/ webhooks using alerts will become practically impossible.
  5. Third party platforms like Tradingview may not be able to offer 2FA making execution complicated and slow.
    Really concerned with this paper.
3 Likes